HOME Development Mutual Fund (Pag-Ibig Fund) will soon issue a notice for an increase in its monthly contribution by 2021.
Pag-Ibig Fund-Matina Branch marketing officer Janice Cedeño said it will be the first time in 30 years that the state-owned savings program will increase its mandatory monthly savings.
In an article published by the Philippine News Agency, the agency's Board of Trustees approved to increase the Pag-Ibig members' payment from the current P100 to P150 by January 2021 and to P200 by January 2023. The same increase shall also be applied to the counterpart share shouldered by employers.
In the same article, Pag-Ibig chief executive officer Acmad Rizaldy Moti said the financing gap is currently at P25 billion, coming from the P40.27 billion-member savings and P75.31 billion home loan takeout recorded for 2018.
Cedeño said that prior to the increase, Pag-Ibig conducted months of public consultations, wherein it gained support of both labor and employer groups.
She said increasing the monthly contribution would give bigger savings to its members.
"Pag malaki ang sinesave niya sa Pag-Ibig, mas malaki ang dividend, with earnings pa (The bigger the contribution, the bigger the savings Pag-Ibig members would enjoy. They would not only get huge amount of dividend, they also get earnings)," Cedeño said on Monday, December 2.
As of now, she said the agency cannot project the total amount they would be able to generate once the contribution hike would be implemented.
But she said it would hugely contribute to the company's operation.
"It will help not only the operation of Pag-Ibig, but also help our housing rates na masustain ang three-percent interest (to sustain its three-percent interest) for the socialized housing," Cedeño said.